Consumer Credit Analytics Solutions

Moody’s Analytics consumer credit analytics solutions enable you to assess performance, estimate losses, and anticipate risks and opportunities, by correlating lending behavior with current and future

economic conditions.

Application include

» Expected Credit Loss Estimation and Impairment Calculations

» Profit & Loss Forecasting

» Benchmarking

» Stress Testing and Scenario-Conditional Projections

» Origination & Scoring

» Strategic Planning & Investment Management

Moody’s Analytics consumer lending risk management solutions provide forward-looking, actionable insights to enhance your decision-making at every stage of the business cycle.

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We employ a comprehensive and consistent approach across all consumer asset classes, to help you address questions such as:

» How can I develop loss forecasting models to comply with IFRS 9 or CECL?

» How do I meet regulatory requirements for stress-testing?

» How will policy adjustments and business cycles impact our profit and losses?

» How do I localize marketing to maximize returns while managing risks?

» How do I forecast future losses in the event of merger and acquisitions?

Benefits include

» Better grasp of risk drivers, such as regional/industry dynamics and business decisions

» Deeper view of quality at origination, and business/ life cycle components of loss

» Enhanced insight from integrated economic data, forecasts, and scenarios

» Better view of losses under trusted economic forecasts and scenarios

» Improved confidence from fully documented and transparent solutions

Our solutions provide the flexibility to assess your portfolio performance at different levels:

» Portfolio level: captures sensitivities to economic events

» Vintage-cohort level: identifies segment-level risks within portfolios, while maintaining model stability

» Loan level: identifies granular behavior, while controlling for individual account-level heterogeneity

Sources: Equifax, Moody’s Analytics

0.00

0.20

0.40

0.60

0.80

1.00

1.20

0 12 24 36 48 60 70 84 96 108 120

2010Q1 Baseline 2010Q1 Stress 2014Q1 Baseline 2014Q1 Stress

Vintage Cohort Maturation AnalysisContractual Default Rate, % of $ outstanding

CONTACT USMOODY'S ANALYTICS | CONSUMER CREDIT ANALYTICS SOLUTIONS

Risk measurement for all major consumer credit lines, including auto financing, credit card, mortgages, home equity, personal loans, and student loans.

» Delinquency Rates

» Future Volumes

» Interest/Fee Income

» Originations

» Prepayment

» Probability of Default (PD)

» Loss Given Default (LGD)

» Exposure at Default (EAD)

» Recoveries

Our ready-made, calibrated, and custom solutions feature:

» Integrated macro and regional economic data, reflecting the latest conditions

» Monthly updated economic forecasts and stressed scenarios

» Forecasts of more than 40 credit bureau attributes

» Transparent methodology and detailed documentation

» Flexible platform with multiple ways to visualize and export data

» Models backed by expert economists and consumer credit analysts

» Superior client services and support

07 0908 1110 12 13 14 1615 17 18 19 20 21

Loss Forecasts Under Multiple Scenarios

Contractual Default Rate, % of $ outstanding

0.0

0.2

0.4

0.6

1.0

0.8

Industry Stress Client Stress Industry Baseline Client Baseline

Sources: Equifax, Moody’s Analytics

CONTACT US Find out more information about Moody’s Analytics award

winning products and solutions.

www.moodysanalytics.com/contact-us

CONTACT DETAILS Visit us at moodysanalytics.com or contact us at a location below.

AMERICAS+1.212.553.1653clientservices@moodys.com

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ASIA (EXCLUDING JAPAN)+852.3551.3077clientservices.asia@moodys.com

JAPAN+81.3.5408.4100clientservices.japan@moodys.com

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